Sun Life Financial (NYSE:SLF) Posts Quarterly Earnings Results

Sun Life Financial (NYSE:SLF) (TSE:SLF) posted its quarterly earnings results on Wednesday. The financial services provider reported $1.47 earnings per share for the quarter, beating analysts’ consensus estimates of $1.45 by $0.02, reports. Sun Life Financial had a return on equity of 17.96% and a net margin of 7.66%. The company had revenue of $986.89 million for the quarter, compared to the consensus estimate of $986.89 million.

Sun Life Financial Trading Down 10.4%

Shares of NYSE SLF traded down $8.51 during mid-day trading on Thursday, hitting $73.47. The company had a trading volume of 1,015,267 shares, compared to its average volume of 676,843. The firm has a 50-day simple moving average of $79.42 and a two-hundred day simple moving average of $73.58. The company has a market capitalization of $40.81 billion, a PE ratio of 17.17, a price-to-earnings-growth ratio of 1.99 and a beta of 0.86. Sun Life Financial has a one year low of $57.22 and a one year high of $84.38.

Sun Life Financial Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Wednesday, November 25th will be issued a C$1.00 dividend. This represents a $4.00 annualized dividend and a dividend yield of 5.4%. The ex-dividend date is Wednesday, November 25th. This is a positive change from Sun Life Financial’s previous quarterly dividend of C$0.96. Sun Life Financial’s dividend payout ratio is 63.79%.

Key Headlines Impacting Sun Life Financial

Here are the key news stories impacting Sun Life Financial this week:

• Positive Sentiment: Sun Life reported Q3 EPS of $1.47, slightly above the $1.45 consensus, and said underlying EPS grew by double digits. Revenue was in line with estimates, with growth across Canada, Asia, U.S. stop-loss and GreenOak. Sun Life Q3 results
• Positive Sentiment: The board raised the quarterly common dividend by 4 cents, or about 4.1%, to $1.00 per share. The increase signals confidence in cash generation and boosts shareholder income. Dividend announcement
• Positive Sentiment: Sun Life set a target for GreenOak’s fee-related earnings margin of at least 35%, indicating an ambition to improve profitability in that business. GreenOak margin target and dividend
• Negative Sentiment: Reported Q3 profit fell 29%, contrasting with growth in underlying earnings and raising concern about the quality or sustainability of headline results. Q3 profit report
• Negative Sentiment: TD Cowen downgraded Sun Life from Buy to Hold, while National Bank Financial cut its rating from Outperform to Sector Perform. The downgrades may have added pressure despite the earnings beat and dividend increase. TD Cowen downgrade

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on the company. TD Securities reiterated a “buy” rating on shares of Sun Life Financial in a report on Friday, August 7th. Weiss Ratings upgraded Sun Life Financial from a “buy (a-)” rating to a “buy (a)” rating in a report on Thursday, October 29th. National Bank Financial cut shares of Sun Life Financial from an “outperform” rating to a “sector perform” rating in a report on Thursday. Royal Bank Of Canada increased their target price on shares of Sun Life Financial from $98.00 to $119.00 and gave the stock a “sector perform” rating in a report on Monday, August 10th. Finally, Barclays reissued an “underweight” rating on shares of Sun Life Financial in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Sun Life Financial currently has a consensus rating of “Moderate Buy” and a consensus price target of $103.50.

Sun Life Financial Company Profile

Sun Life Financial Inc (NYSE: SLF) is a Canadian financial services company that provides insurance, wealth, and asset management solutions to individuals, businesses, and institutions. Its offerings include life, health, and dental insurance; retirement and savings products; investment solutions; and employee benefits.

Through its asset management businesses, Sun Life provides investment management and advisory services to institutional and retail clients. The company also offers workplace pension, group insurance, and employee wellness programs, helping employers support the financial security and health of their employees.

Founded in Montreal in 1865, Sun Life serves clients primarily in Canada, the United States, and several Asian markets, including Hong Kong, the Philippines, Indonesia, India, and Vietnam.